RBC expands target maturity corporate bond ETF product suite

Oct 14th, 2012 | By | Category: Fixed Income

RBC Global Asset Management has expanded of its suite of target maturity corporate bond exchange-traded funds (ETFs) with the launch of the RBC Target 2021 Corporate Bond Index ETF (RQI).

RBC expands target maturity corporate bond ETF product suite

RBC Global Asset Management has expanded its suite of target maturity corporate bond ETFs.

The fund, which has been listed on the Toronto Stock Exchange (TSX), tracks the DEX 2021 Maturity Canadian Corporate Bond Index and will maintain a diversified portfolio of individual Canadian investment-grade corporate bonds, with an effective maturity date of November 2021.

Mark Neill, head of RBC ETF, said: “Since the onset of the financial crisis in 2008, it has become more challenging for investors to manage and source quality corporate bonds across different maturities.”

He added: “We are pleased to be able to help investors address this challenge with the suite of RBC Target Maturity Corporate Bond ETFs, which now includes the RBC Target 2021 Corporate Bond Index ETF.”

Similar to RBC’s existing eight target maturity corporate bond ETFs, the fund is designed to act like an individual bond while providing the diversification and professional oversight of a mutual fund, with the transparency and intra-day liquidity of an ETF.

ETFs such as these have a number of possible uses. For investors with laddered bond portfolios, they can be effective at filling in gaps, providing a solution when certain maturity profiles are difficult to find. They can also been used to effectively target parts of the corporate bond yield curve that an investor believes is undervalued, without the need to take on company-specific credit risks.

“It has been one year since RBC Global Asset Management entered the ETF market in Canada. As we continue to add to our product offering in this space, our focus is on catering to the needs of investors,” continued Neill. “We are proud to continue to deliver investment solutions that enable investors to construct diverse portfolios.”

RBC TARGET MATURITY CORPORATE BOND ETFS TSX  TICKER
 NEW: RBC Target 2021 Corporate Bond Index ETF RQI
 RBC Target 2020 Corporate Bond Index ETF RQH
 RBC Target 2019 Corporate Bond Index ETF RQG
 RBC Target 2018 Corporate Bond Index ETF RQF
 RBC Target 2017 Corporate Bond Index ETF RQE
 RBC Target 2016 Corporate Bond Index ETF RQD
 RBC Target 2015 Corporate Bond Index ETF RQC
 RBC Target 2014 Corporate Bond Index ETF RQB
 RBC Target 2013 Corporate Bond Index ETF RQA

 

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